Tuesday's 2-Minute Tip

The unpredictability of AI: Energy edition

You’ve likely seen countless headlines in recent years regarding artificial intelligence (AI): Is AI taking jobs? Is AI being used in scams? Does AI infringe on copyrighted material? The list goes on and on.

Though all these questions warrant an exploration of their own, today’s tip focuses on an increasingly important topic: AI’s impact on the energy grid. Since the massive data centers that help power AI will continue to increase across the U.S., here are some things you can look for to keep your readers informed beyond potential job creation. 

Biden’s executive order

On January 14, now former President Joe Biden signed an executive order calling for federal sites to host “AI data centers and new clean power facilities.” As reported by Reuters, this comes in an effort to help support the “enormous power needs” required by these rapidly expanding data centers.

According to the order, the Secretary of Defense and the Secretary of Energy will each “identify a minimum of 3 sites on Federal land managed by their respective agencies” by the end of next month that will be suitable to lease out for the construction of AI data centers as well as clean energy facilities to service them.

The order also outlines certain criteria these sites must meet to be suitable for use, such as the correct topographical characteristics, air quality, and resource availability. As observed by the Associated Press, one thing “missing from the order is how to manage the water consumption of AI data centers,” which is another growing concern.

The demand for energy

The rapid development of AI data centers has led to new strains on energy grids across the world. As reported by Bloomberg, this sudden rise in electricity demand “is leading to years-long waits for businesses to access the grid as well as growing concerns of outages and price increases for those living in the densest data center markets.” If all 7000+ data centers around the world ran constantly, it is estimated that they would consume “a combined 508 terawatt hours of electricity per year… greater than the total annual electricity production for Italy or Australia.”

To bring it down to a smaller scale, NPR spoke with a researcher who calculated that one query to ChatGPT uses approximately as much electricity as a single light bulb for 20 minutes. With potentially millions of people using these tools daily, the energy demand adds up fast. Unfortunately, this pace has been much faster than what grid planning can keep up with so far. 

Impact on everyday consumers

While AI data centers can be profitable and create new jobs, there are other aspects to explore with your readers as new ones pop up in your local community or state. 

An example of the impact on household energy consumers is reflected in a recent analysis conducted by Bloomberg. Their analysis found that over “three-quarters of highly-distorted power readings across the [U.S.] are within 50 miles of significant data center activity.” These distortions can damage or destroy appliances, leading to increased costs to consumers, and may increase the risk of electrical fires over time.

The environmental impact also reaches further than a surging demand for electricity. From noise pollution to large amounts of water usage and increased greenhouse emissions, data centers can have a massive impact on the surrounding environment and a community’s public health and local economy, which can also impact other businesses. In addition to keeping your audience informed, reporting on topics such as these is an increasingly relevant way to illustrate how business decisions are tied to consumers’ everyday lives.

Author

  • Aryn Kodet is responsible for managing The Reynolds Center’s social-media strategy and outreach to the broader community of business journalism professionals. Born and raised in Arizona, Aryn Kodet is a graduate of Arizona State University and Barret...

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